6 Financial Mistakes You Need to Avoid

mistakes

Our time is mostly consumed by trying to produce mainly one thing. MONEY. Unfortunately, money isn’t something we take the time to fully understand and learn more about, which can really lead into financial mistakes down the road that can make you the opposite of rich. Read the 7 financial sins that are keeping you poor.

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1. Not Developing a Financial IQ

Schools will teach you how to get a job and how to work, but not how to get rich. People usually after College, start to work, earn money, and then spend it all. This has been seen also with a lot of Athletes who get Giant contracts, make millions, and after they retired they end up bankrupt. This is why is important to develop financial IQ because it’s changing the way you thinking how to properly handle your money and avoid long term consequences.You should start accounting, investing, understanding the market and the law.

2. Investing into Liabilities instead of Assets

By definition, Liabilities are things that make money out of your pocket. Assets are thing that put money into your pocket. An example of liability is expensive luxury car that people often invest. You should spend money on something that will bring you back more money.

3. Beliving you can Save your Way to Wealth

It is always great to get amazing deals and save as much as you can. You should start building and asset portfolio because there’s so much time you could give at a job to earn money. Having a passive income on the side from asset will be extremely beneficial.

4. Never using Failures as Stepping Stones

Even the most successful people don’t’ get everything right. Failure is a given on the path to success and how we deal with failure could significantly impact the level of what we achive. Use all the obtacles by turning all the failures into useful lesson, and never give up in your life.

5. Using all Your Free Time For Entertainment instead of Development

It is very good sometimes to relax, go out, drink few bears, play games once in a while but there will be important priorities that will be needed to be taken care of first if you want to get further. Self-Development happens in our minds which greatly affects our decisions and habits with our work businesses and money. Reading self-development books, listen to a podcast and find a good mentor.

6. Don’t be Afraid to Work and Never Taking Risks

Risk is around us all the time. Everything you decide to do has a margin of risk. No outcome is 100% sure. There are 2 types of people out there. Those who take pride in security they seek stability affiliation comfort work worth doing and the assurance that everything will be okay. And those who take risks and explore opportunities try to make a dent in the universe.
They don’t just see failure as an option and embrace every obstacle as a way forward. The truth is they will never be a perfect time for you to start if you want to lunch a project or idea. So go out work hard and smart.

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